Softbank's ARM IPO: How to buy ARM IPO?
Many are watching the Nasdaq listing of chip designing firm ARM Holdings closely and it could influence market sentiments about the tech industry and IPOs.
What is the expected share price of the ARM IPO?
The expected share price of the ARM IPO is US$51 per share, with a valuation of US$54.5b for the firm.
With enough investors backing Arm, the top end of the price range sits between US$47.00 and US$51.00, with a possibility of the IPO share sale being above this price range.
Pierre Ferragu, an analyst from NewStreet Research, has shared the stock's first buy rating before the IPO even happens, with a US$59 price target.
Update 15 September 2023:
$ARM opened Thursday at $56.10 on Nasdaq, before closing at $63.59, an increase of 24.68%. A successful launch with its initial IPO priced at $51.
What is the Softbank ARM IPO date?
The date of the Softbank ARM IPO is scheduled for Thursday 14 September 2023. This means the shares will start trading during market hours in the U.S. from this date.
What is the ticker symbol for Arm Holdings PLC?
The ticker symbol of Arm Holdings PLC is ARM and the shares will be listed on Nasdaq.
How to buy ARM IPO?
Investors can buy ARM shares on Stake now. Follow the steps below to open an account with Stake and invest in the latest tech IPO.
1. Open a stock investing account
If you want to buy ARM stock, you'll need to sign up to an investing platform with access to the NASDAQ. Lucky for you Stake has access to U.S. stock exchanges.
2. Fund your account
Complete an application with your personal and financial details. Fund your account with a bank transfer, debit card or even Apple/Google Pay.
3. Search for ARM or Arm Holdings
Find the asset by searching for the name or ticker symbol: ARM. Do your own research to ensure it is the right investment product for your own circumstances.
4. Choose an order type and buy the asset
Buy on any trading day with a market, limit or stop order. Look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.
5. Monitor your investment
Optimise your portfolio by tracking how the security performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights that affect your shares.
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About Arm Holdings PLC
Arm Holdings is a British firm that designs chips used in various electronic devices. The company provides the blueprints for semiconductor manufacturers and major technology companies. These include central processing units (CPUs) and graphics processing units (GPUs), as well as offering additional software development, systems and security services.
Arm doesn’t actually manufacture chips themselves but earns revenues through licensing its intellectual property. Design is a key factor in increasing the performance of chips, with factors such as speed, accuracy, energy efficiency and cost all making a difference to the end product.
Arm Holdings has been operating for over 30 years and has become a significant player in the chip industry. Arm claims that 70% of the world’s inhabitants use its technologies through various devices and the firm dominates the mobile phone market. The company works with a wide range of customers in the industry, while some are also competitors in certain areas, such as AMD ($AMD) and IBM ($IBM).
In 2016, Arm was taken private after being bought by Japanese investment holding company Softbank for US$32b. It became part of their US$100b Vision Fund, which has a large portfolio of technology businesses. Softbank tried to sell Arm to semiconductor manufacturer Nvidia ($NVDA) in a US$40b deal in 2022, but it ultimately fell through due to regulatory challenges. Government agencies in a number of countries were concerned about how much control their combination would have over a crucial technology.
Arm’s return to the stock market with an initial public offering (IPO) on the Nasdaq is a highly anticipated event. While only around 10% of the stock will be up for offer, with Softbank retaining the rest at the moment, it's expected to be the largest listing in two years, since Rivian ($RIVN) in November 2021. The outcome is also being viewed as a barometer for new tech IPOs, with lower valuations, rising interest rates and general volatility in the stock market leading to a major slowdown of the trend in recent times.
With a valuation of US$54.5b, Arm shares are reported to be in high demand. Some cornerstone investors are customers, including major names such as Nvidia ($NVDA), Apple ($AAPL), Google ($GOOGL), Intel ($INTC) and Samsung. The financial industry is also keen to see the IPO market recover, as it provides an important revenue stream for many investment banks. Goldman Sachs ($GS), JPMorgan ($JPM) and Bank of America ($BAC) have been involved with selling Arm IPO shares.
Arm does have a strong position in an industry with potential for growth, but some say there is a lot of pressure for this IPO to be successful. Critics say that the AI trend has already been priced in and future gains will be more gradual. Generally lower consumer spending amidst high inflation could lead to lower sales of electronics. The industry does face geopolitical risk and some are concerned about the firm’s exposure to China. Only time will tell how these could affect the share price and many are likely to follow Arm closely.
ARM IPO details
Proposed ticker symbol
Arm Holdings PLC
US$47.00 - US$51.00
🎓 Learn more: What is an initial public offering and how do they work?→
This does not constitute financial advice nor a recommendation to invest in the securities listed. The information presented is intended to be of a factual nature only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking financial, legal and taxation advice before investing.
Megan is a markets analyst at Stake, with 7 years of experience in the world of investing and a Master’s degree in Business and Economics from The University of Sydney Business School. Megan has extensive knowledge of the UK markets, working as an analyst at ARCH Emerging Markets - a UK investment advisory platform focused on private equity. Previously she also worked as an analyst at Australian robo advisor Stockspot, where she researched ASX listed equities and helped construct the company's portfolios.